There is nothing more certain to change than the weather and rules affecting the mortgage industry; neither one of which we have any control of!

The final TILA Escrow Rule, which takes effect for applications received on or after June 1, 2013, has three main elements:

oHigher-priced mortgages secured by a first lien on a principal dwelling require an escrow account be established and maintained for at least 5 years regardless of the loan-to-value.

oEscrow for insurance premiums are not required for condominiums, planned unit developments (PUDs), and other common interest communities where the homeowners must participate in governing associations that are required to purchase master insurance policies.

oA lender that operates predominantly in rural or underserved areas and meets certain asset size and other requirements may be eligible for an exemption from this rule for certain loans they hold in portfolio.

For more detailed information, refer to:

http://files.consumerfinance.gov/f/201304_cfpb_compliance-guide_2013-escrows-rule.pdf

http://www.consumerfinance.gov/regulations/escrow-requirements-under-the-truth-in-lending-act-regulation-z/#date

Effective June 3rd FHA Annual MIP change: This changes applies to all FHA mortgages regardless of their amortization term except streamline refinance transactions that refinance existing FHA loans that were endorsed on or before May 31, 2009 (see ML 2012-4).

With 10% or more down on an FHA loan, the annual MIP will be assessed until the end of the mortgage term or for the first 11 years of the mortgage term, whichever occurs first.

With less than 10% down on an FHA loan, the annual MIP will be assessed until the end of the mortgage term or for the first 30 years of the term, whichever occurs first.

For more information see ML 2013-04 at: http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf

Qualified Residential Mortgage: The Consumer Finance Protect Bureau is expected to release its final mortgage rules in the next few weeks. Underwriting guidelines will be updated to see that loans fit the so-called "qualified mortgage" and ability-to-repay rules, among other requirements. I'll update you as these rules are released.

The industry is also paying attention to the CFPB's focus on disparate lending practices with the ability to renegotiate a rate lock being a subject of debate. The big question is "Are you giving an unfair advantage to one borrower and not to another borrower who didn't renegotiate their lock?" With the volatility of the markets this has become a hot topic of discussion.

Another debate brewing, as part of the CFPB's focus on disparate lending practices, is the ability to renegotiate a rate lock. Do borrowers who renegotiate their lock have an unfair advantage over those who don't? The volatility of the lending industry has cast a spotlight on this hot topic.

And so it continues: The never-ending government oversight of our industry. Frustrating though it may be; the goal does seem to be for the greater good. Just remember: There is nothing as constant as change and nothing as fickle as law makers.